Product details

Amos-Hill Associates, Inc is a veneer manufacturer in Indiana, specializing in the production of premium quality American hardwood veneers for international architectural and furniture markets. Veneer is a decorative wood product created by slicing logs into thin sheets (1/20 to 1/50 of an inch) to maximize the yield of natural wood grain material for applications in architectural and furniture products. Recently, Amos-Hill Associates acquired a new veneer slicing system which uses a new technology, a vacuum table, to hold the flitches (half-logs) from which veneer is sliced from the log. John Chiarotti, the vice-president and general manager of Amos-Hill has requested an analysis of the benefits of purchasing an additional vacuum table for the second production line. The improvement must be significant enough to justify the cost of the new vacuum table. The primary subject matter of this case concerns a capital costing decision relating to a new equipment purchase. Secondary issues examined include production possibilities and the effect and timing of a major equipment purchase. The case has a difficulty level of three (appropriate for junior level) to five (appropriate for first year graduate level). The case is designed to be taught in two class hours and is expected to require two to six hours of outside preparation by students.